OUR SAVINGS PRODUCTS
Put your business cash to work with our simple, rewarding and easy to use business savings accounts.
Redevelopment projects bring layers of complexity, particularly when they involve rural assets, mixed-use income streams and historic land ownership.
This was the case for a Redwood Bank customer seeking to refinance funding used to redevelop a series of barns, while also repaying the mortgage on their principal private residence.
The client required a lender that would take the time to fully understand the assets, the countryside setting and the title intricacies involved. With Newsource Commercial Finance acting as broker, Redwood was able to offer a deal on the best possible terms.
THE SITUATION
The property, valued at £619,692, is a converted barn within a farm estate near Halifax, West Yorkshire, comprising one residential unit and one commercial unit. The wider farm has been in the customer’s family since 1957 and extends across 44 acres of pastureland.
Over time, the customer has redeveloped several of the barns across the estate, including:
One converted into a holiday let
One let under an Assured Shorthold Tenancy
One on a commercial lease to a gym business
The holiday let and the two units to be refinanced were all held under a single title, creating the need to split the title to reflect the lending structure, a key complexity in the transaction.
The rural location, mixed-use nature of the buildings and shared title structure meant the client needed a lender willing to work through both the legal and practical challenges of the site.
THE SOLUTION
Redwood approved a loan of £290,016, structured on a five-year fixed term with a 2 per cent fee and an LTV of 47 per cent, rolling on to a 25-year term thereafter.
Although the asset was mixed-use, the majority of income was derived from the commercial element, enabling Redwood to provide a commercial mortgage and interest rate suitable for the deal.
By taking a holistic view of the site and working carefully through the shared title issues, Redwood and Newsource worked together successfully to navigate the legal complexity required to split the titles and complete the transaction. While not a large loan by value, the customer’s strong credit profile and the complexity of the assets required a lender with specialist expertise and a relationship-led approach.
THE EXPERIENCE
Robin Webb, Senior Credit Operations Officer at Redwood, said: “This was a complex rural transaction, involving mixed-use assets, historic land ownership and the need to split titles accurately. Taking the time to understand the full site, how the buildings operated and the client’s objectives was essential. It’s a great example of how a considered, specialist approach can unlock solutions where standard lending criteria may struggle.
“This deal involved a lot of hard work and dedication. We worked closely with Newsource Finance and the solicitors to fully understand the site and the title arrangements to help get the deal completed.
“We’ve built a strong relationship with Newsource in recent years, and they trusted us as a specialist lender to navigate the complexities of mixed-use assets, commercial lending and shared titles.”
Mark Craven, Director of Newsource Finance, said: “Having worked with the client on this project to raise the initial development funding we sought a lender who were willing to take the time to fully assess this complex, mixed-use rural asset with shared titles. Redwood’s pragmatic, relationship-led approach meant challenges that might have stopped the deal progressing were worked through collaboratively, allowing us to secure the right outcome for the client. It’s a strong example of how specialist lending expertise can add real value on more complex transactions.”